Last chance saloon for Greece

8 July, 2015

It looks like Greece has finally been given an ultimatum by its creditors in a last ditch attempt to save the country from leaving the Eurozone. A deal must be presented by Thursday with the deadline of Sunday to thrash out the details and agree on a new bailout. But given the Greek government’s approach to negotiations since it came to power in January, anything can happen in that time. The ECB has made it clear that their support for Greek banks will end next week and the Eurogroup has “a Grexit scenario prepared in detail” if a deal is not struck. The odds of a new deal being agreed are heavily stacked against the optimists, if indeed there are any optimists left. We can expect volatility to remain high going into the weekend and certainly next week if Grexit ensues.

Away from Greece today’s other important market events include the UK’s emergency budget and this evening’s FOMC minutes. Both could move the markets, in the case of the budget scrutiny will be given on the OBR’s growth forecasts given the deterioration of the situation in the Eurozone and proposed welfare cuts, which in turn could give insight into when that first rate hike from the Bank of England will come. The FOMC minutes have greater potential to move the dollar where investors will want to see how improved inflation prospects and wage growth might translate into greater potential for a September rate hike, but given the dovish bias to growth forecasts and external threats to the US economy that remain we feel September is too early for the Fed to make its first move.


Source link  
Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...


Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...


Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

  


Share it on:   or